Scania Opposes Delay in Volvo Stake Sale

Scania AB has approached the European Union Commission in a bid to prevent rival truck maker Volvo AB from being given more time to sell its controlling stake in the company.

"We have put in a complaint," Magnus Hahn, vice president Scania business communications, said. "At a later stage, Scania could sue (the EC) for a wrong decision" if Volvo is allowed more time to comply with a Commission order to sell its 45.5-percent stake in Scania.

There have been published reports that Volvo wants to extend the April 2004 deadline because of worries it would be forced to sell at a fire sale price.

Goteborg-based Volvo hasn't filed a formal petition, but has had informal discussions with the EC, company spokesman Maarten Wikforss said. "We won't comment on the content of these discussions," he added.

Stockholm-based Scania wants to see the existing deadline upheld, arguing the uncertainty is hurting its business.

Hahn said the company has to pay slightly more to raise capital, independent truck dealers are more reluctant to invest their own money and there may be some impact on customer decisions while Scania's ownership situation is deemed uncertain.

"We are certainly disadvantaged," Hahn said.

Volvo accumulated its interest in Scania in an attempted takeover that was blocked by European antitrust authorities in 2000.